Highly skilled workers leaving South Africa

[Nat Quinn]

A shortage of skilled workers has become one of South Africa’s biggest risks for 2025, as the country faces a significant drain on critical skills.

This is according to the Allianz Risk Barometer for 2025, which compiled the views of over 3,700 risk management experts from more than 100 countries and territories.

Cyber incidents topped the list of risks for South Africa, followed by business interruptions and natural catastrophes.

This is the first year a shortage of skilled workers made the top 10 risks facing South African businesses.

Interestingly, a shortage of skilled workforce dropped out of the top 10 global risks for 2025 and now sits at eleventh place.

However, in South Africa, this remains a top concern for businesses, and many large companies have raised the alarm about the country’s skills shortage.

This is largely because many highly skilled South Africans leave the country in search of better opportunities overseas.

A comprehensive survey conducted by the Inclusive Society Institute in late 2023 found that the number of South Africans considering emigration remains disturbingly high.

The survey found that 8.59% of adult South Africans over 18 indicated that they either agreed or strongly agreed that they were seriously considering emigrating to another country in the next year or so.

10.78% of respondents with higher education qualifications indicated they were seriously considering emigrating in the next year or so – far more than the 9.25% recorded in 2022.

Data from The Outlier revealed that there were just over 900,000 South Africans living abroad in 2020.

This number has increased steadily over the past 20 years, from 500,000 in 2000, according to Stats SA’s Migration Profile Report for South Africa 2023.

The Outlier revealed that, in March 2021, 205,000 South Africans were living in England and Wales alone, according to the Office for National Statistics.

Many are highly qualified, with 54% of those aged 16 years and older holding higher education qualifications such as a degree.

A similar trend can be seen in Australia, where 43% of South Africans who have moved there have a bachelor’s degree or higher.

This flood of skilled workers leaving the country has severely impacted South African organisations in both the private and public sectors.

Rudi Dicks, the head of the project management in the office of the Presidency, said Eskom’s lack of skilled and experienced workers has led to underperforming power stations and catastrophic issues that could have been prevented.

Eskom chairman Mteto Nyati has reiterated this, recently saying that part of the reason Eskom struggled for so long was a ‘brain drain’ as skilled engineers left the country.

“So, we did not have the capacity nor the technical expertise to pull off Medupi and Kusile because the technical people who would ordinarily be putting together the plans and testing those plans were not here,” Nyati explained.

“All of this led to incorrect technical specifications, and then, of course, there were massive delays and cost overruns as corrupt individuals and unqualified companies siphoned off money.”

The government’s plan

The South African government is collaborating with the private sector to refine the Critical Skills List, which identifies occupations crucial for economic growth and facilitates expedited visas for foreign professionals.

Marisa Jacobs, MD of Xpatweb, said the government is reviewing the methodology and data sources used to compile the list, seeking input from stakeholders.

This includes using data beyond traditional sources like the Quarterly Labour Force Survey (QLFS) and incorporating insights from private sector surveys like Xpatweb’s, which identifies critical skills shortages and recruitment challenges.

The 2023/24 Xpatweb Survey revealed that engineers, ICT professionals, skilled artisans, foreign language speakers, and C-Suite executives are among the most in-demand skills.

Around 79% of organisations reported difficulty recruiting critically skilled individuals, with over 80% citing visa application challenges as a significant barrier.

Jacobs said this is a top priority for the government, as Operation Vulindlela estimates that addressing the critical skills shortage could boost GDP by up to 1.3 percentage points over 12 years.

Recommendations for improving the Critical Skills List include:

• Piloting a system linking the list to specific visa numbers.

• Regularly updating the list with predictable timelines.

• Improving transparency and communication with stakeholders.

These measures aim to ensure the Critical Skills List effectively addresses the country’s labour market needs and facilitates the smooth entry of skilled foreign professionals.

 

source:Highly skilled workers leaving South Africa – Daily Investor

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